2. A firm faces the production function 1 Q = f(K,L) = 80 [0, 4K-0,25 +0,4L-0,25] 0.25. It can buy the inputs K and L at prices per unit of 5 TL and 2 TL respectively. What combination of L and K should be used to maximize output if its input budget is constrained to 150 TL?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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2.
A firm faces the production function
1
Q = f(K,L) = 80 [0, 4K-0,25 +0,4L-0,25] 0.25. It can buy the inputs K and
L at prices per unit of 5 TL and 2 TL respectively. What combination of L and
K should be used to maximize output if its input budget is constrained to 150
TL?
Transcribed Image Text:2. A firm faces the production function 1 Q = f(K,L) = 80 [0, 4K-0,25 +0,4L-0,25] 0.25. It can buy the inputs K and L at prices per unit of 5 TL and 2 TL respectively. What combination of L and K should be used to maximize output if its input budget is constrained to 150 TL?
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